Shanghai Index jump reflects in transpacific rate hike

The Shanghai Containerized Freight Index (SCFI) rose on Friday, reflecting a general rate increase suggested by the Transpacific Stabilization Agreement for March 15. TSA recommended its 15 members, who move over 90 percent of the cargo from the Far East to the U.S., raise rates $300 on March 15 and are recommending another, as yet unspecified increase on May 1. It has also recommended its members to seek further increases when they negotiate 2014-2015 contracts of $300 per FEU from 2013-2014 levels for U.S. West Coast cargo and $400 per FEU for all other cargo. The majority of transpacific shippers have contracts that run from May 1 to April 30. Richard Ward, a container derivatives broker/analyst at Freight ...